Novozymes Conference CallQ1 2017

April 26, 2017

Good start to 2017 with solid progress on our strategic priorities

2

• Resources deployed towards high-growth opportunities and growth markets, and we continue our investments in R&D to strengthen our technology leadership

• Progress in our pipeline with two of our market-expanding opportunities advancing and two product launches in Bioenergy and BioAg in Q1

• Strategic collaboration with BoehringerIngelheim Animal Health in probiotics for poultry hatcheries

3

DK

Km

3,609 3,429 3,390

3,714 3,740

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

950 961 973 1,062 1,010

25%26%27%28%29%30%31%32%33%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Adjusted EBIT margin

Reported EBIT margin

DK

Km

Q1 organic growth and DKKm

Q1 EBIT growth and DKKm

+2% +4% -3% +6% +3%

Sales and earnings on track in Q1 2017

+4%* +3% -4% +10% +6%* Outlook for 2017 maintained

• 2-5% organic growth

• ~28% EBIT margin

• 2-5% net profit growth

• CAPEX DKKm 1,700-1,900

• ROIC 24-25%

Organic sales growth for Q1 2017 at +3%. Profitability in line with expectations

• Majority of our markets have developed well since Q3 2016. Especially Bioenergy and Food & Beverages have seen good growth

• Adjusting for lay-offs in Q1, EBIT margin expanded to ~29%

*Adjusted EBIT growth

Q1 in line with expectations

• Strong growth in automatic dish wash, driven by Europe

• Mixed developments within laundry: Good underlying development in emerging markets, whereas accentuated focus on costs by large fast-moving consumer goods companies induce some uncertainty

DK

Km

1,176 1,154 1,154 1,218 1,216

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Quarterly organic growth and DKKm

+5% +4% -5% +5% +1%

Household Care as expected in Q1

2017 focus on top 20 customers, emerging markets and preparation of our hygiene and freshness platform

• Individual strategies and pipeline developed for top 20 customers

• New application development center in India and full-scale detergent lab in China will be established in 2017

• Efforts on hygiene and freshness platform continue, with first launch expected toward the end of the year

4

Positive start to 2017 as new innovation and higher ethanol production drive growth

• Good development in US conventional biofuels supported by increased production and launch of our Spirizyme® T products

• US production of ethanol estimated up by 4% in Q1. Ethanol producers’ margins still suppressed, but positive

• Continued growth of sales to biomass ethanol as ourpartners in 2G improve run rates

DK

Km

626

570 579

663681

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

-6% -6% -8% +7% +6% Good momentum in Bioenergy sales with 6% growth in Q1

Market trends in 2017 to support growth

• New product launches planned

• Focus on working closely with our customers to improve plant efficiency through digitalization and technical support

• Continued support for RFS could be challenged in 2017; however, mandated volumes in 2017 are fixed

5

Quarterly organic growth and DKKm

Growth in animal health & nutrition offset by expectedchange in BioAg sales pattern

• Sales of animal feed enzymes grew across markets and segments due to performance and favorable timing, while probiotics continue rollout in new regions

• Sales growth in BioAg was negative in Q1 as expected, mainly due to a changed sales pattern and continued headwinds from low farmer incomes

• Launch of Acceleron® B-200 SAT for soybeans in North America is supporting sales. Acceleron® B-300 SAT for US corn is progressing as planned

• Strategic collaboration with Boehringer Ingelheim on probiotics for poultry hatcheries is supporting the new focus area

DK

Km

582496

452

677

582

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

-8% +13% -3% +22% +2%

Agriculture & Feed grew 2% in Q1, driven by strong feed sales

Solid sales growth expected in 2017, mainly driven by animal feed

• Continued strong demand for feed enzymes

• Moderate growth expectations for the year in BioAg due to low farmer incomes. New products and expansion into new regions to drive long-term growth opportunity in BioAg

6

Quarterly organic growth and DKKm

DK

Km

926 930 947 937 1,001

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

+2% +4% -2% +4% +6%

2017 focus on increased adoption of our recent launches and enabling new markets through new innovation

• Continued push for further penetration of our low-lactose Saphera® solution as well as recent starch launches in our core markets

• Enabling new Food & Beverages markets in grain milling and vegetable oil processing

Food & Beverages up 6% in Q1, driven by nutrition and starch processing

Food & Beverages off to a good start in Q1

• Starch in the emerging markets is contributing to growth due to a favorable development in corn pricing and recently launched innovation

• Strong growth in nutrition, driven by lactose reduction in dairy and higher sales for infant nutrition

• Beverage enzyme sales showed solid growth, driven by raw material optimization for brewing

• Baking contracted as expected due to implementation of reduced prices in the North American freshkeeping market

7

Quarterly organic growth and DKKm

R&D update

Animal health & nutritionNew strategic collaboration in probiotics

BioAgAcceleron® B-200 SAT for soybeans in the US

Conventional biofuelsSpirizyme® T advanced suite of glucoamylases

8

• Strategic collaboration with BoehringerIngelheim Animal Health to develop and commercialize probiotics for poultry hatcheries

• Probiotics administered in hatcheries provide birds with beneficial bacteria as early as possible, resulting in better health and productivity

• Enhanced isoflavonoid formulation that enables additional upstream treatment in soybeans

• Isoflavonoids stimulates the growth of beneficial microbes in the soil to improve nutritional uptake, leading to improved plant health

• B-200 SAT will be available as part of Monsanto’s Acceleron® product line for soybeans in 2017

• Novozymes’ Spirizyme® T portfolio enables conventional ethanol producers to convert untapped trehalose sugars into ethanol, boosting yield and profits

• Spirizyme® T allows a 100 MGY plant to produce approximately 700,000 gallons of additional ethanol per year, adding up to USD 1m in revenue

"Don't leave your sugar behind"

Spirizyme® T Portfolio

Area Innovation Feasibility Discovery Development Launch Commercial

Household Care Hygiene solutions

Household CareTailored emerging markets

solutions

Food & Beverages Vegetable oil processing

Food & Beverages Grain milling

Agriculture & Feed Natural growth promotion

Agriculture & Feed Enhanced corn inoculant

Agriculture & FeedNew transformative

BioAg solutions

Bioenergy Biomass conversion

Progress in our pipelineDuring Q1 2017, our enhanced corn inoculant advanced to “Commercial” stage, while our grain-milling project progressed from “Discovery” to “Development”

Total pipeline has:

8 programs with significantmarket-expanding potential

Significant potential to boostorganic growth

>100 projects

• Projects that improveproductivity

• Technology projects to expand the ”toolbox”

9

Arrows denote progress to next phase over the past three months

10

2017 outlook maintained Q1 2017: High profitability in line with expectations

• Gross margin slightly up compared with Q1 last year. Productivity improvements increased the gross margin but were offset by negative price/mix

• Adjusting for the lay-offs in Q1, the EBIT margin expanded to ~29%

2017 outlook maintained on all parameters

DKK 1.7 bn returned to shareholders

• Dividend of DKK 4.00 per share paid

• Stock buyback program of up to DKK 2 billion in 2017 on track; ~25% was concluded end of March

• 5 million treasury shares cancelled on March 24, 2017; total number of shares now 305 million

Key financials(DKKm)

RealizedQ1 2017

2017 outlookApril 26

Sales growthOrganic

+3% 2-5%

EBIT margin 27.0% ~28%

Net profit growth 4% 2-5%

Net investmentsExcl. M&A

271 1,700-1,900

Free cash flow Excl. M&A

738 2,000-2,200

ROIC incl. goodwill

24.9% 24-25%

11

• Good start to 2017 with solid progress on strategic agenda. Sales and earnings on track

• Outlook maintained on all parameters

• We continue to put resources behind our top innovation programs, deep partnerships and local market solutions

• Our business is about turning amazing science into sustainable biological answers in a growing world, and our focus is on creating long-term value

Forward-looking statements

This presentation and its related comments contain forward-looking statements, including statements about future events, future financial performance, plans, strategies and expectations. Forward-looking statements are associated with words such as, but not limited to, "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "could," "may," "might" and other words of similar meaning.

Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations, both positively and negatively. The risks and uncertainties may, among other things, include unexpected developments in i) the ability to develop and market new products; ii) the demand for Novozymes’ products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in Novozymes’ core areas; iii) the ability to protect and enforce the company’s intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company’s growth platforms, notably the opportunity for marketing biomass conversion technologies or the development of microbial solutions for broad-acre crops; vi) the political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) the global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates and inflation; viii) significant price decreases on input and materials that compete with Novozymes’ biological solutions. The company undertakes no obligation to update any forward-looking statements as a result of future developments or new information.

12

• Good start to 2017 with solid progress on strategic agenda. Sales and earnings on track

• Outlook maintained on all parameters

• We continue to put resources behind our top innovation programs, deep partnerships and local market solutions

• Our business is about turning amazing science into sustainable biological answers in a growing world, and our focus is on creating long-term value

Q&A

13